“The Social Implication Of The Gresham Theory In Liberia” Gresham Law is an economic principle that states: When a government overvalues one type of money and undervalues another, the undervalued money will leave the country and disappear from circulation into hoards, while the overvalued money will flood into circulation. In summary, it is commonly stated as: Weak money undermines strong money. In the social context, due to the inability of National Government past and present to efficiently allocate resources and adequately redistribute the wealth our country, have created a social and economic imbalance thus making significant portion of the country population worse-off and a select group better-off. As the result of this, burdens and responsibilities of the poor and unemployed citizens have shifted on the minorities that are in the position to make ends meet. Perspective Details: Giving to the fact that our African tradition dictate and mandate individuals with incomes to attend to the responsibilities and needs of family members that are jobless and unable to finance their needs, has giving birth to the slow pace of growth of individuals in the working population. Interestingly, only few conscious individuals have realized that the prime reason for the high level of corruption in our country is due to the lack of financial independence of significant portion of the country population. The inability of majority of the country population to finance their own activities has led to the high level of dependency on the few individuals that are financially independent. However, due to the inability also of the few financial independent individuals’ incomes to adequately accommodate the burdens and responsibilities of the financial dependent individuals has constrained these individuals to get involved into corruption practices as an impetus to offset and accommodate the financial responsibilities of the financial dependent individuals in order to adhere to the dictate of our traditional requirements. As the result of this situation, financial independent individuals are getting weaker day by day and funds that are supposed to be used for future investment have been redirected to aiding family members, thereby limiting and narrowing the space for growth. Road To Revival: From a personal view point, I think that buck of the tasks in restoring social and economic balance rests of the shoulder of National Government. National Government must see the need to design and implement social and economic policies that will provide the platform for these malaises in our society to be adequately addressed. Many will argue that National Government does not have the resources to provide basic income and food stamps for the poor and unemployment insurance for the jobless to increase their purchasing power and reduce their dependence level; however, I am convinced that National Government is in the position of providing basic income in the form of the provision of non-interest bearing loans to citizens. There are still enough waste in our National Budget, and if we sincerely institute cult analysis and efficiency gains adjustment savings enough to support non-interest loans to citizens will be realized. Additionally, National Government needs to stop being insensitive to social security. Vast majority of our old population is now trooping on the streets and are now certified public beggars (CPB), while fraction of them are at home waiting for the young population to take care of them. On the other hand, the blind and disable population have also been left out of the redistribution model, thus turning them into street beggars. These are situations that beg questions about the redistribution of national income? We pay our social security taxes but our old population cannot get their social security benefits. National Government must response to these ills and make transfer payment to these people in order to provide a security net to protect the unfortunate from privation. Most importantly, National Government needs to realize that there is a national emergency for us to start assembling our natural resources thus making them more valuable in the form of finish consumer commodities. We have suffered the burden of repurchasing our own resources in the form of finished consumer commodities for very high prices for a very long time. The consequences have been disastrous: high unemployment rate, leakage of imported consumer commodities and high prices of consumer commodities among others. Incentives to curb and alleviate these social and economic malaises mentioned above can only be provided if we start to add value to our natural resources, by processing them into finish consumer commodities for the consumption of both our local economy and abroad. The merit of this will without doubt be rewarding in that, employment opportunities will be provided, households incomes will increase, economic activities will improve which will subsequently triggers economic growth that will in turn provide additional funds for National Government to increase its provision of basic social services. By doing this, it means that National Government is committed to ensuring the achievement of the vision of the Washington Consensus. At a final note, we all need to join forces with National Government to ensure the promotion and encouragement of a process and system that will create a humane, just, sustainable and culturally appropriate environment. #MAMALIBERIAISFOREVERYBODY#
Posted on: Mon, 01 Jul 2013 08:53:40 +0000
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